Section 3 chapter 1 Flashcards
people freely choose what to buy and sell
market economy
system that lets competition among business determine the price of products
free enterprise
businesses and industries and resources are privately owned
capitalism
the government decides what to produce where to make it and what price to charge
command economy
an economic and political system in which the government owns or controls almost all the means of production
communism
the total value of goods and services that a country produces in a year
gross national product GNP
only goods and services created within the country
gross domestic product GDP
the process by which manufacturing based on machine power becomes wide spread in an area
industrialization
the percentage of people who can read and write
literacy rate
the richest countries
developed countries
system of roads ports and other facilities needed by a modern economy
infrastructure
poor countries
developing countries
